The UK competition regulator has launched formal investigations into Trainline, Theguardian, and RED Driving School over concerns regarding misleading pricing practices. According to the Competition and Markets Authority (CMA), the inquiries focus on alleged “drip pricing,” a practice where mandatory charges are separated from the headline price or added later in the booking process rather than being shown upfront.
UK Watchdog Targets Hidden Fees in New Probe
The actions form part of the regulator’s first consumer protection drive utilizing direct enforcement powers granted under the Digital Markets, Competition and Consumers Act of 2024. These powers allow the CMA to determine whether consumer protection laws have been breached without taking businesses to court. Emma Cochrane, executive director for consumer protection at the CMA, stated that customers should not be surprised by extra fees when booking travel, holidays, or lessons, and noted that unclear pricing hinders consumers from confidently comparing offers.
Details of the Company Investigations
The probe covers three distinct sectors, with the watchdog issuing advisory letters to all participating firms:
* Trainline: The rail and coach ticketing platform is being examined over how it presents booking fees. The CMA reported observing train transaction fees ranging from 59p to £2.79, alongside a £1.50 fee on coach tickets. * Virgin Atlantic: The airline, founded by Sir Richard Branson in 1984, faces scrutiny over whether mandatory resort fees and local taxes were included in upfront package holiday prices. The regulator noted these added costs can total hundreds of pounds. * RED Driving School: One of the largest national driver education providers in the UK, operating a network of over 1,700 franchised driving instructors, is under investigation regarding the display of its mandatory booking and digital fees.
The CMA emphasized that the cases remain at an early stage and that no conclusions have been reached regarding whether any laws were broken.
Market Impact and Regulatory Context
Following the announcement, shares in Trainline fell 14% to 208.4p. Brokers Panmure Liberum and Stifel maintained buy ratings on the stock while issuing varying price targets of 420p and 330p, respectively. Panmure Liberum questioned the timing of the probe, noting that Trainline began displaying booking fees on its ticket selection page in March 2025, and pointed out that the Office of Rail and Road had previously agreed on fee presentation changes within the sector. Stifel warned that the investigation would weigh on the shares until resolved, though it anticipated any operational impact would be short-lived.
Trainline stated that it had proactively engaged with the CMA over several months and was taking steps to enhance the presentation of certain fees. A Virgin Atlantic spokesperson confirmed the airline was carefully reviewing the points raised and would cooperate fully with the investigation.
Under the legislation empowering the regulator, if an infringement is ultimately found, the CMA possesses the authority to order compensation for affected customers and impose financial penalties of up to 10% of a company’s global turnover. Previous actions under the same framework included fines issued to ticketing site StubHub UK and driving schools AA and BSM.
